Manage Policies
Learning Objectives
After completing this unit, you’ll be able to:
- Explain how policy renewal creates a new policy term.
- Describe how Digital Insurance supports both individual and bulk policy renewals.
- Describe how policy cancellation ends coverage and records financial impact.
- Explain how reinstatement restores a cancelled policy within the same term.
Govern the Boundaries of Coverage
Issuance and endorsements manage coverage during a policy term. Renewals, cancellations, and reinstatements determine whether coverage continues, ends, or resumes. These actions affect the continuity of the insurance relationship itself, which makes them operationally and financially sensitive.
Each action has a distinct purpose and outcome.
- A renewal starts a new term with a new set of effective dates and financial commitments.
- A cancellation ends coverage, typically triggers final premium calculations and refunds or balances due, and records the reason and timing.
- A reinstatement restores a cancelled policy within the same term, reestablishing in force status under defined rules and timing constraints.
Digital Insurance executes these actions through the same governed lifecycle used across the badge. Versioned policy records, effective dating, and service-driven transactions help keep coverage history and financial results consistent across channels and teams. In the user experience, these capabilities are exposed as clear policy actions that invoke centralized services to enforce structure and controls.
In this unit, you learn how renewals, cancellations, and reinstatements work, how they differ from endorsements, and how Digital Insurance uses effective dating and versioned transactions to manage coverage continuity and financial outcomes.
Renew a Policy for a New Term
Renewal extends coverage beyond the current effective-to date by creating a new policy record with its own term dates. This is a distinct action from endorsement. Endorsements create versions inside a term. Renewal opens a new term with a clean boundary, a new set of effective dates, and a new lifecycle.
Digital Insurance executes renewal through the same governed service pattern you learned about throughout this badge. The platform retrieves policy context, generates a renewal quote when review is needed, then creates the renewed policy record and a renewal transaction that captures the financial and audit marker.
Renew an Individual Policy
As an auto policy approaches expiration, Riley Zhang at Cumulus initiates renewal from the active policy record.
Depending on whether she expects changes, Riley selects Renew Policy for a direct renewal or Renewal Quote when the policyholder reviews and adjusts terms. Both actions launch a configured flow that orchestrates policy services behind the scenes.
The platform starts by retrieving the existing policy context so the renewal is based on the latest in-force structure. If Riley decides to renew the policy, the platform generates a renewal quote that mirrors the current coverages and attributes and reevaluates pricing and eligibility as configured. Riley can adjust details, confirm the new term dates, and review the updated premium before the policyholder accepts.
After confirmation, Digital Insurance creates a new policy record for the new term and writes a renewal transaction that captures the financial and audit marker for the event. The prior term remains unchanged. The renewed policy begins with its own effective dates, premium values, and lifecycle history.
Renew Policies at Scale
Individual renewals work well for exceptions and high-touch accounts. In practice, insurers often need to renew a high volume of policies on a schedule, with consistent pricing and rules and a controlled way to manage exceptions.
Digital Insurance supports bulk renewal through configured flows and batch processes that identify eligible policies and renew them in a governed, repeatable way. Salesforce admins define the selection criteria, such as product line, payment status, and the effective to date window. For each eligible policy, the platform retrieves the current policy context, applies the configured renewal rules and pricing logic. The platform also creates a new policy record for the next term, and records the event with a renewal transaction that captures the financial and audit marker.
Bulk renewal also supports multi-root policies, where a parent policy acts as the container for multiple child policies. When a multi-root policy renews, the parent-child structure is preserved in the new term. The platform creates a new parent policy for the renewal term and renewed child policies for each root product, and recalculates premiums and taxes at the child level. The platform then rolls those amounts up to the parent for a consolidated view. Renewal transactions are created for each child policy, along with a parent-level renewal transaction that represents the rolled up totals. Multi-root renewals can run asynchronously, so teams track completion and exceptions without blocking the overall renewal run.
Depending on the configuration, the bulk process can renew policies directly or generate renewal quotes for review before renewal is finalized. Policies that require special handling can be excluded and routed to individual processing.
This approach supports controlled updates at renewal time. An insurer can roll out an updated coverage package, adjust deductible options, or apply standardized changes to a defined segment and renew those policies under the updated terms, while keeping clear term boundaries and transaction-level traceability. The balance is efficiency with control for high-volume processing without sacrificing accuracy or oversight.
For more details about setting up bulk renewals, check out Insurance Policy Bulk Renewal Implementor Journey in Salesforce Help.
Cancel a Policy
Not all policies reach renewal. Sometimes, cancellation follows nonpayment, an underwriting decision, or a policyholder request. Regardless of the reason, the insurer needs these two precise outcomes.
- Coverage ends on an unambiguous date.
- Financial impacts reflect that end date.
From the policy record, Riley selects Cancel Policy and enters the cancellation effective date. The configured action invokes the cancellation service, which applies the cancellation consistently across the policy term. It updates coverage status, adjusts the effective end coverage date at the correct boundary, and cancels any future dated versions so the policy cannot appear in force later in the term.
Based on the cancellation date, the platform recalculates premium and tax impacts and writes a cancellation transaction that acts as the audit marker and handoff point for refund or balance-due processing.
The result is a policy history that claims and compliance teams can rely on, with financial outputs that don’t require manual reconciliation.
Reinstate a Cancelled Policy
Not every cancellation ends your organization’s relationship with a customer. When a policy is cancelled within its term, often for nonpayment, the policyholder sometimes resolves the issue and requests coverage be restored.
To restore coverage, Riley opens a cancelled policy record, confirms that reinstatement is permitted within the current term, then selects Reinstate Policy. The reinstatement flow collects an effective date, which is often the day after cancellation but can be later within the same term to support a gap.
Behind the scenes, the reinstatement service restores coverage by creating a new policy version rather than rewriting an existing record. This new policy brings forward the last active structure prior to cancellation, including coverages, participants, and insured assets. The record also preserves the original term end date. The platform then prorates premium, taxes, and fees based on the reinstatement effective date and remaining term duration, and it creates a reinstatement transaction that records the financial impact and provides an audit marker.
Reinstatement is allowed only within the original term. If the term has already expired, coverage can’t be reinstated and must be issued as a new term instead.
Renewals, cancellations, and reinstatements determine whether coverage continues, ends, or resumes. In Digital Insurance, these actions run through governed services that create new policy records or versions, apply effective dating and proration, and record lifecycle transactions for audit and financial traceability.
Wrap Up
Across this badge, Riley Zhang’s work at Cumulus Insurance traced the full policy lifecycle. She created an auto quote, issued it as an in-force policy, and managed the changes that followed across the term. Each action built on the same product logic and shared services rather than manual rework, so Cumulus keeps continuous coverage history and traceable financials for every policyholder.
With this unit, you’ve completed this introduction to Policy Administration for Digital Insurance. You worked from product models to structured quotes, issued policies from accepted quotes, and managed change across endorsements, renewals, cancellations, and reinstatements, all on one consistent foundation of versioned records, shared services, and configurable experiences.
Use the Resources sections in each unit to explore the services and implementation details in more depth.